This is No “Accident”: Ohio Court Rules CGL Policy Doesn’t Cover Shoddy Subcontractor Work

One of the ongoing battles in construction defect coverage law around the country is whether a general contractor’s commercial general liability (“CGL”) policy obligates the insurer to defend and indemnify the general contractor in a lawsuit based on faulty work performed—not by the general contractor—but on its behalf by a subcontractor. Yesterday, Ohio joined a small minority of states when its high court ruled that damage from a subcontractor’s faulty work is not an accident triggering an insurer’s defense obligation.
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Timing a Petition to Remove

It’s no secret the federal court is the preferred forum for litigating insurance coverage issues. When considering whether to remove, one factor to always consider is whether any defendant is a citizen of the State in which the action will be brought. Should that be the case, the Forum Defendant Rule dictates that the matter is no longer removable once the forum defendant has been properly joined and served. How does this impact a yet-to-be served forum defendant who is
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Courts Continue to Limit Coverage for Data Breach Claims under CGL Policies

This past week, a Florida federal court dealt another blow to policyholders seeking coverage for data breach claims under traditional commercial general liability (CGL) policies, finding that coverage was not afforded under a CGL policy for a claim involving a data breach incident that exposed credit card information and resulted in more than $1.4 million in damages. St. Paul Fire & Marine Ins. Co. v. Rosen Millennium, Inc., No. 617CV540ORL41GJK, 2018 WL 4732718 (M.D. Fla. Sept. 28, 2018). Given the increasing frequency and magnitude
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New York Court Finds Insured Failed to Establish its Broad Discovery Demands Might Lead to Evidence Relevant to the Application of an Exclusionary Provision in Commercial General Liability Policy

In Northfield Insurance Company v. Golob, an insurer issued a commercial general liability policy to owners of a residential construction project. The policy contained an exclusion titled “Contracted Persons” exclusion, which barred coverage for bodily injury sustained by any person “employed by . . . any organization that . . . [c]ontracted with [the named insured] or with any insured for services” where the injuries “[arose] out of and in the course of employment by that organization.” As a part
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Use of Uninsured Vehicle To Transport Victim To Site of Assault Does Not Trigger UM Coverage

On August 14, 2018, in a case of apparent first impression in New Mexico, the New Mexico intermediate appellate court in Crespin v. Safeco Ins. Co. of Am., 2018 (N.M. Ct. App. 2018) upheld a lower court’s ruling that transporting a minor in an uninsured motor vehicle to another location in order commit a sexual assault does not trigger uninsured motorist (UM) coverage because the assault did not arise out of the use of the uninsured vehicle. The decision rebuffs
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The ALI’s Recently Adopted “Restatement of the Law of Liability Insurance” Receives Mixed Reviews from Courts and Legislatures

The much-anticipated Restatement of the Law of Liability Insurance (RLLI) was recently approved by the American Law Institute (ALI) during its Annual Meeting in May 2018. Since its adoption, the RLLI has been met with mixed reviews from courts as well as at least one state legislatures. As discussed in previous blogposts, the RLLI is the ALI’s first publication in the field of insurance law and touches upon nearly every legal issue frequently faced by insurance professionals. Prior to its adoption,
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“Made Whole” Doctrine Prevents Equitable Subrogation Where Insureds with Tortfeasors

In re September 11 Litigation, World Trade Center Properties LLC et al. v. Certain Underwriters at Lloyd’s, London et al. (S.D.N.Y., August 2, 2018) Judge Alvin K. Hellerstein of the Federal District Court in the Southern District of New York has, for years since the September 11th attacks, been assigned the countless actions dealing with the massive property damage resulting from the tragedy. This is the last such case, which involves insureds making a claim against their insurer’s recovery from a
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Just the Fax: New Jersey Rules that Actual Property Damage is Required for Violation of the Telephone Consumer Protection Act

Proof of a violation of the Telephone Consumer Protection Act (TCPA), without corresponding evidence of either “physical injury to tangible property” or “loss of use of tangible property,” is not enough for an insured to establish that the claims against it alleged “property damage” under a CGL policy, according to the New Jersey Appellate Division’s recent decision in Penn National Insurance Company v. Group C Communications, Inc., 2018 WL 3625424 (N.J. App. Div. July 31, 2018).  In Group C Communications,
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A Primer On Appraisal in Florida First-Party Property Damage Claims

In the wake of Hurricane Irma and other recent natural disasters, Florida courts have weighed in on one of the most important tools for resolution of first-party property damage claims: appraisal. In this post, we will address multiple appraisal issues and how courts have ruled recently on those issues. Failure to Timely Invoke Appraisal May Constitute Waiver In Versailles Sur La Mer Condominium Assoc., Inc. v. Lexington Ins. Co., 2018 WL 3827154 (M.D. Fla. Jul. 24, 2018) the insured, a
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Illinois Appellate Court Reaffirms Trigger Date for Malicious Prosecution Offense Under Coverage B

In First Mercury Insurance Company v. Ciolino, the Illinois Appellate Court, First District waded into the sea-change concerning the trigger of coverage for malicious prosecution offenses under a liability policy. The First District joined the other districts to consider the issue, departed from the Seventh Circuit’s Erie prediction, and reasoned that the trigger date for malicious prosecution coverage will be similar under law enforcement liability and commercial general liability policies. The facts giving rise to the coverage dispute stem from
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